USA – US multinational beverage giant, the Coca-Cola Company has reported a 16% rise in third-quarter net revenue buoyed by a continued rise in demand for its products as markets recover from the pandemic.
The Atlanta-based company posted Q3 revenue of US$10 billion, compared with last year’s US$8.7 billion figure.
Meanwhile, the company which owns major beverage brands including Coca-Cola, Sprite and VitaminWater saw operating income grew 26% in the quarter.
Global unit case volume – a key indicator of demand – grew 6% year-over-year, benefitting from the ongoing recovery in markets where coronavirus-related uncertainty is abating. The average value of products sold also rose 6%.
In Q3, Europe, Middle East & Africa unit case volume grew 8% while the company’s Latin American division saw volume go up 8%.
Unit case volumes went up 4% in North America, 3% in Asia Pacific and 3% in Coca-Cola’s bottling investments segment.
Unit case volume of sparkling soft drinks grew 6% in the quarter, driven by strong performance across all geographic operating segments.
Nutrition, juice, dairy, and plant-based beverages grew 12%, underpinned by a “solid performance” from Minute Maid Pulpy in China, Maaza in India, and Del Valle in Mexico.
Hydration, sports, coffee, and tea saw unit case volume grow 6%. Coffee grew 19%, primarily driven by the ongoing reopening of Costa retail stores in the UK.
“Our strategic transformation is enabling us to effectively navigate a dynamic environment and emerge stronger from the pandemic,” said James Quincey, chairman and CEO of The Coca-Cola Company.
“While the recovery continues to be asynchronous around the world, we are investing for growth to drive long-term value for the system.”
Coca-Cola has updated its full-year guidance “to reflect another quarter of momentum in the business” and says that it now expects to deliver organic revenue growth of 13-14%.
Shares of Coke were up 2% after the company’s earnings and revenue topped Wall Street’s estimates and it raised its forecast for fiscal 2021.
Like other food and beverage companies, Coke is dealing with snarls in the supply chain and higher commodity costs, which have resulted in some shortages.
CEO James Quincey said he expects to see sporadic shortages on grocery shelves through 2022 adding that the shortage will likely decrease in significance over time as the situation improves.
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